Answer:
C. add up the market values of all final goods and services is the correct answer.
Explanation:
- By add up the market values of all final goods and services is a way to compute GDP.
- GDP stands for Gross domestic product and describes the total financial cost of all goods and services produced and traded on the market within a country during a specified time
- GDP is used to estimate economic activity in a country.
- Economists use the Gross domestic product to decide whether the economy is expanding or undergoing a recession.
- GDP is calculated by National agencies.
$8,000 (80% limitation) amount of year 2 income may be offset by the carryforward of the year 1 net operating loss
When a business' running costs are higher than its gross income, it experiences an operating loss (or revenues in the case of a service-oriented company).
Operating profit is the profit a business makes before taxes and interest. In the same manner as cost of goods sold, selling, general, and administrative expenditures are, interest and taxes are not regarded as operating costs. In many cases, businesses make enough money to pay their costs and turn a profit.
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Answer:
Explanation:
First, find the YTM of the bond (rD), you can do this with a financial calculator using the following inputs;
Maturity of the bond : N = 20
Annual coupon payment; PMT = 8%*1000 = 80
Face value; FV = 1000
Price of the bond ; PV = -1,050
then CPT I/Y = 7.51% (this is the Pretax cost of debt; the rD)
Next, find the cost of equity (rE) using CAPM;
CAPM; r = risk free + beta (Market risk premium)
rE = 0.0450 + 1.20(0.0550)
rE = 0.0450 + 0.066
= 0.111 or 11.1%
Next, WACC formula = wE*rE + wD*rD(1-tax) whereby;
w = weight of..
rD= pretax cost of debt
WACC = (0.65*0.111) + [0.35*0.0751(1-0.40) ]
WACC = 0.07215 + 0.015771
= 0.0879
Therefore, WACC = 8.79%
Answer:
<u>1. Johann is looking to double the profits of his lemonade stand</u>
Explanation:
Note that Johann was<em> still making m</em>oney from lemonade stand but was not content with the profits he was making that was his argument or reason for increasing the price of a cup of lemonade from 25 cents to 50 cents.
<em>Without having forsight</em> Johann's decision eventually resulted in him selling fewer cups at the new price and therefore making less money than before.
Every organization has its own rules. The statement that best describes the Federal Deposit Insurance Corporation's is that The FDIC has issued policy statements that address auditor independence in various contexts.
- Independence in auditing needs integrity and an objective way in all audit process. It also requires the auditor to perform his or her task freely and in a focused way.
The Independence of the internal auditor is simply known as the freedom from parties or people whose interests can be harmed by the outcomes of an audit.
See full question below
Which statement best describes an element of the Federal Deposit Insurance Corporation's (FDIC) requirements for auditor independence?
FDIC independence requirements incorporate requirements for attorneys and actuaries.
FDIC independence requirements mirror the AICPA and DOL independence rules.
The FDIC has issued policy statements that address auditor independence in various contexts.
The FDIC has adopted regulations that incorporate IESBA independence rules.
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